Reliance Industries (Q1 FY14)

India Infoline News Service | Mumbai |

RIL reported GRMs of US$8.4/bbl in Q1 FY14 as against US$7.6/bbl in Q1 FY13 and US$10.1/bbl in Q4 FY13.

CMP Rs924, Target Rs950, Upside 2.8%
  • Revenues at Rs876bn, lower by 4.6% yoy driven by fall in E&P segment revenues owing to continued fall in hydrocarbon production
  • OPM improves by 73bps yoy but falls 122bps qoq; Qoq fall was led by decline in EBIT margins of the refining segment
  • GRMs were at US$8.4/bbl as compared to our estimates of US$8.5/bbl led were down qoq on the back of fall in gasoline and naphtha spreads
  • Strong growth seen in shale gas business
  • PAT at Rs53.5bn was tad better than our estimates as jump in other income was much ahead of expectations
  • Sentiment for the stock has seen a marked revival due to 1) gas price hike and 2) budget approvals being received for the KG-D6 field but we revise our rating from BUY to MP given limited upsides from current levels
Result table
(Rs m)
Q1 FY14
Q1 FY13
% yoy
Q4 FY13
% qoq
Net sales
876,450
918,750
(4.6)
841,980
4.1
Material costs
(729,830)
(783,480)
(6.8)
(696,930)
4.7
Purchases
(3,920)
(1,630)
140.5
(2,220)
76.6
Personnel costs
(8,990)
(8,470)
6.1
(7,920)
13.5
Other overheads
(62,960)
(57,700)
9.1
(56,660)
11.1
Operating profit
70,750
67,470
4.9
78,250
(9.6)
OPM (%)
8.1
7.3
73 bps
9.3
(122) bps
Depreciation
(21,380)
(24,340)
(12.2)
(22,390)
(4.5)
Interest
(8,100)
(7,840)
3.3
(7,090)
14.2
Other income
25,350
19,040
33.1
22,430
13.0
PBT
66,620
54,330
22.6
71,200
(6.4)
Tax
(13,100)
(9,600)
36.5
(15,310)
(14.4)
Effective tax rate (%)
19.7
17.7

21.5

Reported PAT
53,520
44,730
19.7
55,890
(4.2)
PAT margin (%)
6.1
4.9
124 bps
6.6
(53) bps
Ann. EPS (Rs)
66.3
55.2
20.1
69.2
(4.2)
Source: Company, India Infoline Research

Segmental performance
Revenues (Rs mn)
BSE 915.05 [0.85] ([0.09]%)
NSE 915.60 [0.55] ([0.06]%)

***Note: This is a NSE Chart

 

Advertisements

  • Save upto Rs.2.67 lakh with Pradhan Mantri Awas Yojana ...Know more
  • Now Save Rs.3150 on your Demat Account ...Click here
  • Now get IIFL Personal Loan in just 8* hours...APPLY NOW!
  • Get the most detailed result analysis on the web - Real Fast!
  • Actionable & Award-Winning Research on 500 Listed Indian Companies.